Officials with Greenwood Mills are assuring retirees from Lindale Mills in Floyd County, that they will not be losing any of their benefits.
Greenwood Chief Financial Officer Tommy Davis said on Monday that Greenwood Mills will indeed, turn over that pension plan to the federally backed Pension Benefit Guaranty Corporation there had been some concern among those previously employed by Lindale Mills after receiving a letter from Greenwood which said that the company was no longer able to make the required contribution to the Lindale pension plan.
Davis said that Greenwood had shrunk from approximately 7500 employees to just 375, resulting in their no longer being able to meet the necessary contribution amounts.
Operations of the Pension Benefit Guaranty Corporation are financed by those insurance premiums set by Congress, and paid by the sponsors of defined benefit plans, investment income, assets from pension plans trusteed by PBGC, and the recoveries from companies formerly responsible for the plans.
The Pension Benefit Guaranty Corporation guarantees basic benefits earned prior to each plan’s termination date which include pension benefits at the normal retirement age; most early retirement benefits; annuity benefits for survivors of plan participants and also some disability benefits.
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